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HMRC internal manual

VAT Government and Public Bodies

Government departments and health authorities: Contracted Out Services (COS) Headings: COS Heading 55 - Purchasing and procurement services

This Heading allows recovery on purchasing and procurement services i.e. the procurement service charge.



  • Negotiating procurement contracts
  • Management and co-ordination of bulk orders
  • Cloud based procurement services
  • Government procurement services
  • Where you use a buying agent or private firm to carry out your purchasing, then any VAT incurred on the buying agents services would be eligible for recovery under this heading



  • The actual cost of the goods procured